The General Controller has released a 200 page report on the cost overruns incurred in modernizing the Cartagena Refinery, and accused Ecopetrol (NYSE:EC) of spending US$4.02B more than the original budget.
Theoretically, lower oil prices mean some resources will cease to be economically viable and will have to be written down. “How much will be written down?”is a question that we frequently get asked. Gran Tierra (TSX:GTE) gives us first look, although it is a special case.
The USO said that its presence has been critical to support community residents in Monterrey, Aguazul and Tauramena who are protesting Ecopetrol’s decision to eliminate transportation for contractor workers, which it says is another sign of the NOC using the oil price crisis as an excuse to weaken worker rights.
Gran Tierra Energy (TSX:GTE) has announced its 2016 investment plan which it says will give it flexibility in allocating capital to projects and better weather the volatility in oil prices. The firm says that it wants to both grow and expand on its assets in Colombia.
USO affiliated workers at the Barrancabermeja have put up the greatest resistance to Ecopetrol’s (NYSE:EC) cost cutting measures, with a continued run of protests and blockades affecting the area since mid-December. An unstructured dialogue continues for now.
Pacific E&P (TSX:PRE) CEO Ronald Pantin gave his first interview since the firm’s stock took a beating last week due to liquidity concerns which forced it to take an extension on interest payments. The executive insists that the firm remains on solid footing despite the upheavals.
Ecopetrol has unveiled a number of different road and small infrastructure projects, as well as a “bio-health park” and aqueduct. These and other Corporate Social Responsibility (CSR) related stories in our periodic summary.
Geopark (NYSE:GPRK) has released its work plan for 2016, in which it looks to create a flexible capital allocation scheme that can adjust to the market conditions and select projects in the five countries where it operates. Currently Colombia is slated to receive the largest investment.
The National Hydrocarbons Agency has canceled three contracts with Optima Oil and Range Resources for not meeting their contractual obligations and supplying inadequate letters of credit as a guarantee.
“Cash is King” says Ecopetrol (NYSE:EC) president Juan Caros Echeverry about the outlook for 2016. Apart from keeping a firm control on its costs, the NOC is also looking to both sell participation in some offshore blocks and acquire shares of blocks in foreign waters.
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